Malaysian state-owned power company Tenaga Nasional Bhd (TNB) has acquired 80 per cent stake in two UK-based renewable energy companies — GVO Wind Ltd and Bluemerang Capital Ltd – for an enterprise value of about $235.6 million (RM923 million).
The acquisition, conducted through TNB’s subsidiary Tenaga Wind Ventures UK Ltd, marks TNB’s first foray into onshore wind in the UK.
In an announcement on Thursday, TNB said, “The acquisition is part of TNB’s five-year international expansion roadmap. Acquiring the onshore wind assets is also in line with TNB’s strategy on renewable energy expansion under ‘Reimagining Tenaga’ strategy to position TNB as one of the top global equity players by 2025.”
The portfolio of the two wind companies, with 53 operational onshore medium wind turbines, will add a total combined capacity of 26.1 MW. TNB’s total international renewable energy portfolio will be hiked to 280MW after the acquisition, it added.
The acquisition was funded through internally generated funds and borrowings.
TNB had last year acquired a 50 per cent stake in Britain’s 365 MW solar power asset from a subsidiary of Terraform Power Inc for $607.6 million (GBP 470 million). The acquisition, at that time, was the first such by TNB in the renewable energy asset in Europe. It was funded through $750 million sukuk proceeds issued by the company in October last year.
In fact, 2018 has set pace for mega renewable energy deals. In January, US-headquartered infrastructure fund manager Global Infrastructure Partners (GIP) along with co-investors closed the $5 billion acquisition of Asia Pacific’s largest renewable energy producer Equis Energy from the parent infrastructure fund manager Equis.